Because of the extraordinary greed of American financiers and businessmen, they invent all kinds of ways to make huge sums of money. We cannot forget how in 1997-98 American hedge funds destroyed the economies of poor countries by manipulating their national currencies. When as a result of the so-called trade in currencies the companies in the poor countries faced bankruptcy, the Governments were told not to bail out any company or bank which was in deep trouble.
The Americans claimed that these companies or banks were inefficient and they should be allowed to go bankrupt and perish. Better still they should be sold at fire-sale price to American investors. Yet today we see the US Government readying US700 billion to brazenly bail out banks, mortgage companies and insurance companies. Where does the money come from? From thin air as no real money in cash or bullion or anything tangible are moved into the bankrupt banks. The money is just in the form of loan papers and entries in the books of the banks or companies. The US 700 billion has no backing whatsoever. No gold reserves, no foreign currency reserves as required for other countries. Without such backing the US Dollar is actually useless. Only the military power of the US is forcing the world to give value to the US Dollar.
Desperate to avoid a serious recession the US has abandoned all its principles. It has now banned short selling, limited currency trading and insist that the accounts of hedge funds and currency traders to be open for inspection and be published. In the final spasm of fear, the Government has given itself the right to resolve the problem of bankrupt banks and companies by the Government taking over i.e. the great capitalist country has accepted what is nothing more than nationalisation which it had condemned so much before.
The US now owes the world US 14 trillion. There is no way it can ever settle this debt. If other countries fail to repay or service their debts, the US would demand that they be made bankrupt. Now the US is literally bankrupt but it still insists that the pieces of paper, the famous or infamous greenbacks have some value. It actually has no value. Certainly it cannot be used to finance wars of aggression against Iraq and Afghanistan, to finance the CIA (Central Intelligence Agency) activities in undermining Governments and countries. But still the US' ability to threaten countries is undiminished.
The Americans claimed that these companies or banks were inefficient and they should be allowed to go bankrupt and perish. Better still they should be sold at fire-sale price to American investors. Yet today we see the US Government readying US700 billion to brazenly bail out banks, mortgage companies and insurance companies. Where does the money come from? From thin air as no real money in cash or bullion or anything tangible are moved into the bankrupt banks. The money is just in the form of loan papers and entries in the books of the banks or companies. The US 700 billion has no backing whatsoever. No gold reserves, no foreign currency reserves as required for other countries. Without such backing the US Dollar is actually useless. Only the military power of the US is forcing the world to give value to the US Dollar.
Desperate to avoid a serious recession the US has abandoned all its principles. It has now banned short selling, limited currency trading and insist that the accounts of hedge funds and currency traders to be open for inspection and be published. In the final spasm of fear, the Government has given itself the right to resolve the problem of bankrupt banks and companies by the Government taking over i.e. the great capitalist country has accepted what is nothing more than nationalisation which it had condemned so much before.
The US now owes the world US 14 trillion. There is no way it can ever settle this debt. If other countries fail to repay or service their debts, the US would demand that they be made bankrupt. Now the US is literally bankrupt but it still insists that the pieces of paper, the famous or infamous greenbacks have some value. It actually has no value. Certainly it cannot be used to finance wars of aggression against Iraq and Afghanistan, to finance the CIA (Central Intelligence Agency) activities in undermining Governments and countries. But still the US' ability to threaten countries is undiminished.
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